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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWall Street investors get in the landlord business and the results are profits from evictions
Wall Street investors get in the landlord business and the results are profits from evictionsSARAH K. BURRIS
Raw Story
According to a Bloomberg News report, draws attention to a company called HavenBrook Homes. The company is controlled by massive money manager Pacific Investment Management Co. For those lenders that lost their shirt in the crash, hedge funds, private equity companies and investment firms helped flip empty houses into rental properties.
In Georgia, companies like HavenBrook Homes are twice as likely to file for an eviction notice than a smaller owner. American Homes 4 Rent is another company known for quickly pulling triggers on evictions. The two companies serve them to a quarter of the homes they own, where others serve evictions to 15 percent of their properties, Bloomberg cites Ben Miller, a George State University professor that helped create a report. But Colony Starwood Homes is the winner, serving evictions for one-third of their homes.
While landlords were once mom and pop operations or run by small property management services, theyve now become large-scale operations. They once turned a profit by foreclosing on homes but now theyre taking people to court to collect on rent or process evictions. The cost is a surprisingly low $85 in court costs and only $20 to have the person ejected. Some companies actively induce the evictions by moving extremely slow in making repairs. When renters withhold their rent as a result, the company moves to evict.
Bloomberg cites Atlantas Federal Reserve, which revealed their own research that shows landlords like this might be destabilizing the housing market in the state. Their research is based on 2015 court records that show hundreds of thousands of homes were snatched up by Wall Street companies. Evictions are also predominantly in poor neighborhoods and those known for being communities of color.
In Georgia, companies like HavenBrook Homes are twice as likely to file for an eviction notice than a smaller owner. American Homes 4 Rent is another company known for quickly pulling triggers on evictions. The two companies serve them to a quarter of the homes they own, where others serve evictions to 15 percent of their properties, Bloomberg cites Ben Miller, a George State University professor that helped create a report. But Colony Starwood Homes is the winner, serving evictions for one-third of their homes.
While landlords were once mom and pop operations or run by small property management services, theyve now become large-scale operations. They once turned a profit by foreclosing on homes but now theyre taking people to court to collect on rent or process evictions. The cost is a surprisingly low $85 in court costs and only $20 to have the person ejected. Some companies actively induce the evictions by moving extremely slow in making repairs. When renters withhold their rent as a result, the company moves to evict.
Bloomberg cites Atlantas Federal Reserve, which revealed their own research that shows landlords like this might be destabilizing the housing market in the state. Their research is based on 2015 court records that show hundreds of thousands of homes were snatched up by Wall Street companies. Evictions are also predominantly in poor neighborhoods and those known for being communities of color.
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Wall Street investors get in the landlord business and the results are profits from evictions (Original Post)
portlander23
Jan 2017
OP
Here's the original Bloomberg article that the Raw Story piece was based on
Yo_Mama_Been_Loggin
Jan 2017
#2
NCTraveler
(30,481 posts)1. I'm the largest residential property manager in my area.
Who the fuck files to evict 15% or more of their units? That's nuts. I mean completely nuts. They must not do any screening. Then again, I've turned down fund managers as clients.
I'm at a loss for even the low number they are throwing out there.
There are numerous items in this article that don't pass the sniff test.
Yo_Mama_Been_Loggin
(108,010 posts)2. Here's the original Bloomberg article that the Raw Story piece was based on
https://www.bloomberg.com/news/articles/2017-01-03/wall-street-america-s-new-landlord-kicks-tenants-to-the-curb
One conclusion was that eviction rates were higher in Atlanta because there were fewer tenant protections than in other cities.
One conclusion was that eviction rates were higher in Atlanta because there were fewer tenant protections than in other cities.